Tuesday, April 15, 2014

An open letter to "The Revenant's"

Friends and Readers

The time has come. It's time for The Revenant to move on and as the Chevrolet slogan advocates, Find New Roads.Just what that means is that at this point I no longer foresee being able to continue this blog since most of my time and writings will be directed to a totally new and exciting venture celebrating AMERICA'S SPORTS CAR. Due to overwhelming support and requests from readers I am starting a my own professionally designed website designed for the serious Corvette enthusiast and collector. The new site is known as Corvetted. All future posts about the Corvette, the Corvette Collector market, Corvette auctions, Corvette events and even some Corvette history will be on my new web site www.corvetted.com. Currently the site is not accessible and is currently in the final stages of beta testing. The site should go live by May 1, 2014. I think you will agree that Corvetted is greatly improved and a truly professional Corvette site designed for the serious Corvette enthusiast and collector. Here is a brief overview of just what Corvetted is about.

We are busy at work putting the finishing touches on yourCorvettedsite and hope you will
not only stop by when our site goes live in mid April but become a “vetted”
daily reader and member of ourCorvettedcommunity.

Sunday, April 6, 2014

In a few days two prophetic auctions will take place that
collectors of Corvettes will want to keep their eyes on whether they plan to
bid at these auctions or not.The two
biggest sellers of collector Corvettes in the country, Mecum® and
Barrett-Jackson® will be holding their second important collector auctions of
2014.The reason these auctions are
important is because after some mixed and difficult to interpret first quarter
Corvette auction results, we should get a better read on the Corvette collector
market and where it is headed for this year.After a spectacular 2013 which saw new records set on “blue chip” Corvette
prices, and while the Corvette segment of the collector market was strong for
most rare and well optioned cars, at this point it is difficult determine
whether last year’s strong market trends will continue for 2014.

Based on the mixed results of the first quarter auction
events from the several auction houses, including the most important Corvette
auction companies, Mecum® and Barrett-Jackson®, it has been difficult to
predict whether the strength in the Corvette market will continue throughout
2014. In January, Barrett-Jackson® had
their best Scottsdale auction in history and their sales results showed an
overall sales increase in the high single digits. The Corvettes at
Barrett-Jackson® were impressive and enthusiasts got to see a new world’s
record price for a Corvette sold at auction when a 1967 L88 Corvette was sold
for $3.85M, breaking a record set just a few months prior at Mecum’s Dallas
auction of $3.52M by another 1967 L88 Corvette.At the same Barrett-Jackson® auction this year enthusiasts and bidders also witnessed another record was set for a
third generation Corvette when the world famous L88 racecar, “The Rebel,” was sold
for $2.86M.Normally when two Corvette
world’s records are shattered in the same auction it would be a pretty good
indicator that the market was definitely going to have another exceptional year
ahead.

A world's record price was paid for a C-3 at auction when "the Rebel" was hammered down for $2.5M at Barrett-Jackson in Scottsdale. (Photo source: Barrett-Jackson)

But only a week later that projection was put on hold after
Mecum’s, the largest of all collector Corvette auction companies, results were
posted.Sales and attendance at the
world’s largest collector car auction in the world slipped from the prior year
and more than a few of the most important featured Corvettes failed to
sell.But in the volatile collector car
market things are not always as they may initially appear and in fairness there
were several external factors at work which impacted those results. It should be remembered that much of the
country was snowed-in and as the automobile world has recently witnessed the
weather has been a factor in automobile sales, new and used, throughout the
country in January and February.So it
could be expected that attendance and sales for Mecum’s Kissimmee event would
be negatively affected. Even in light of
the lagging attendance, Mecum did manage to sell almost 250 of the 400
Corvettes offered, a victory in light of the adverse weather and attendance.

Terry Michaelis' incredible concours winning Z06 was bid to a healthy $900K at Mecum's Kissimmee auction but did not meet the owner's reserve. He must have been right since the car sold a few weeks later for an undisclosed price. (Photo source; Mecum)

But the results left the Corvette market with some serious questions.Could the disappointing results be attributed
entirely to the external factors or was there a shift coming in the previously
strong Corvette market?Analyzing the
results, one important fact emerged, more than a few of the “blue chip”
Corvettes did not sell in Kissimmee, and due to the heavy impact of these cars on
the entire Corvette market those results raised a flag indicating a need to find
answers and determine the actual direction the 2014 market was headed.Of the top ten most important, rare and
important Corvettes, of the 400 consigned, seven did not sell.Though the weather and attendance may have influenced
those results, normally the strongest “blue chip” collector cars are rarely
affected by factors such as weather, since most serious, informed and qualified
potential bidders have vetted the cars, developed bidding plans and contingencies
for those investment lots well in advance of the actual auction.If the weather or some other external factor
arises those bidders are usually prepared to place their bids by phone, fax, or
computer. So if it wasn’t the drop in attendance and if the collector whales
had their plans in place, what was it that kept the cars from changing hands,
were the bids too low or were the reserves too high?Buyer’s
reserves are something that the auction company has little control over and no
auction company works harder to bring buyer and seller together than Mecum®.The next step is to determine whether the
bids placed were realistic in light of the strong Corvette market up to that
point and were the bids at least “fair market value.”

Were the bids placed actually strong bids and realistically
within range of market value for the cars crossing the block or was interest in
the “blue chip” Corvettes beginning to ebb? And there lies what may be the
mitigating factor to help arrive at a realistic analysis of the Kissimmee sale
and more specifically the health of the Corvette market.Failing to sell due to not meeting the
reserve may just indicate that the sellers were being over optimistic in their
expectations and trying to over-capitalize on the previous year’s otherwise
strong market.Based on the robust sales
and record prices in 2013 more than a few sellers jumped on the band wagon to
try and reap the benefits of a seller’s market and it is common to see owners
of collector cars over react and project super-inflated values on their cars
following record setting sales in the market.Certainly there is little Mecum can do rectify unrealistic reserves aside
from advising consignors on their reserve prices versus the actual market
value.Certainly no one works any
harder to bring buyer and seller together than Dana and Frank Mecum and their
auction teams,but ultimately the
decision as to the reserve price rests with the consignor.And as many have witnessed in person and on
TV consigners can be more than a little obstinate and set on their prices.So let’s take a look at those top ten
Corvettes, not from a “sold” perspective but more importantly for market
analysis purposes, the final bid price.

﻿
﻿

Dana Mecum on the Block trying to bring the buyer and seller
to an agreement. (Photo source: Mecum)

Below is a list of the top ten Corvettes and the selling
price or the final bid price.For the
purpose of determining the market direction we will ignore whether the car sold
or not and look at the final bid price versus the fair market valuation of the
car at the beginning of 2014.

Though the ’56 Corvette prototype and the 1963 Earl styling
cars were disappointing that they did not sell, since they are unique cars they
are difficult to consider in determining the health of the Corvette
market.More importantly are the highly
desired Z06’s and L88’s where there is considerable prior market data to help
judge the quality of bids placed.

To help us in our analysis let’s look at only the cars in blue type since those are the cars for
which we have some historic price data over time. One of the best market guides available for
determining both historic and current market values for collector cars is the Hagerty
Price Valuation Guide®. Hagerty®
has compiled extensive data on the first four Corvette generations’ values over
the last seven years based on the condition of the car and many of the the
production RPO’s.You can find
information here: http://www.hagerty.com/valuationtools/

The first thing which must be kept in mind is, with the
exception of only a limited number of Corvettes with rare options, the vast
majority of Corvettes, today, are not selling for the prices they were getting
in 2007 according to Hagerty.Many of
the strong optioned cars are getting close to their market highs but most
average optioned Corvettes are still selling below what they were being sold
for in 2006 and 2007/The biggest reason
is that 2007 was the last year prior to the stock market and corresponding
collector car market crash of 2008.Two
optioned Corvettes which are exceptions are the 1963 Z06’s and the 1967 through
1969 L88’s.Both of these optioned
Corvettes are bringing considerable more on average than they did seven years
ago.Even the rarer 1967 L89, of which
there were only sixteen produced, is not bringing 2007 prices on average even
though they have doubled their seven year low price of $217K .But the reality is that most Corvette
enthusiasts are not buying $250K + cars even though we may want to.Most of us are buying the less rare but well to
mid optioned and less costly cars.While most of those cars’ values are still on average below the 2007
prices, the top dollar “blue chip” Corvette sales performance has a ripple
effect on most other Corvette prices.So,
in short, blue chip prices impact the entire Corvette market, if not immediately,
shortly thereafter.

One of the factors that have
driven some rare optioned Corvette’s pricing to all time highs and helped them
defy the trend for most of the Corvette market is the focus over the last
several years with performance and racing optioned cars, especially those with
documented heritages.As a result not
only have the prices of Z06’s and L88’s escalated well above their seven year
highs they have influenced prices on other high performance optioned cars, as
seen in the values of the high horsepower big blocks as well as the LT1, ZR1
and ZR2’s, though bargains can occasionally still be found.

This exceptional 1969 L88 sold $510K at Mecum's world's largest collector car auction in January. In Corvette L88 terms this could be considered a prudent buys. (Photo source: Mecum)

So when the “blue chips” go up
usually other Corvettes will follow almost in order of options and rarity.In other words values of high optioned
performance based Corvettes will go up in a quicker time frame than the lower
optioned and horsepower cars.And,
though the overall Corvette market has been making a comeback towards meeting
or exceeding their overall market highs of 2006 and 2007, at the end of 2013,
mid and lower horsepower optioned Corvettes are still lagging well behind their
highs and in many cases have shown little upside growth from their historic low
prices.So much of the otherwise strong
Corvette market in the last two years has come from the concours condition
restored or survivor, well optioned, condition 1 and 2 cars with a bulletproof provenance
and even better if they had a documented performance heritage.Various strong and weak examples can be seen In
the “Affordable” chart below which illustrates that most examples are well
above their “Market Low Value” but have not quite attained their value as of
December 2006, and there is even an example of the current value being only
$100 above the historic low value.

The fact that most Corvette prices
have not yet attained their seven year highs is good news for collectors who
still want to get in the market, but many optioned Caorvettes are now rapidly approaching
those highs.Understanding this and the
market direction adds some urgency to potential purchases if the market
performs like it did in 2013.To give
you a feel for some of those values here are some Hagerty® historic and current
valuations of some of the most affordable first through fourth generation
Corvettes all rated in a strong #2 condition. (Note these are averages and deviations
to these valuations will occur.)

Another helpful tool in valuating
collector cars is Mecum’s Infonet® which allows Mecum members to find sales data
on all cars crossing the block at Mecum auctions for the past several years.
This can be found at http://mecum.com/ .This tool is one of the best and even allows
you to pull up a specific auction lot number, description from several years
ago.And another attribute of Infonet® is that it even if the car did
not sell it shows the highest bid placed.It illustrates Dana Mecum’s belief that an educated bidder is good for
his business.

Over the past seven years Mecum’s Infonet® reports that eleven
1963 Z06’s have crossed the block since 2007.Four of the eleven 06’s were sold, four failed to meet reserve and three
show no bids and no disposition.Sold
prices ranged from a $250K bargain for a Nabers Brothers older restoration,
from the Buddy Herin collection (the same consignor of the 1967 L88 which set a
world’s record price of $3.5M at Mecum’s 2013 September Dallas event) to over
$1M for the well documented historic Gulf Oil race car which sold in January of
2009.The chart below shows Hagerty’s
historic valuation on number 1 condition “Blue Chip Corvettes,” of which the
1963 Z06’s and 1967 – 69 L88’s make up an important piece of the “blue chip”
segment.(Note that the historic high price on all of
these Corvettes is the current valuation and that all cars are significantly
above their 2006 year end prices)

By analyzing the data in this
format we get a better perspective of the “blue chip” segment of the Corvette
market.Using this approach it appears
that the bids placed on the investment Blue chip segment were at or above
market valuation.This finding would
support the theory that in many cases the reserves were set to maximize, if not
over-estimate, the potential value of the consignment.Though this would support the theory that
overall the current Corvette market appears healthy.However, that being said there may be some
softening or stabilization in the C3 market segment.Of the seven C3 Corvettes on the lists, two
were underbid/sold, three were sold above the current market value, and two
were bid at market value.But the
second generation blue chip segment appears exceptionally strong based on the
five L88, Z06, and L89’s offered for sale.Every one of these cars were bid/sold above the current market
evaluation, and most of those were substantially above the current values.Based on this the ripple effect of these high
value, investment cars should positively impact well optioned other Corvettes,
particularly the second generation cars.

But as previously noted, we
should get a more definitive answer and 2014 market direction following the two
auctions taking place later this week. Both auctions have some good examples of
first, second and third generation Corvettes in every segment scheduled to
cross the block and we will be watching, analyzing and reporting our
findings.Both auctions have more than a few Corvettes that will help us decipher the market direction.You can learn more about the Mecum
consignments at http://www.mecum.com/auctions/top_picks.cfm
and the Barrett-Jackson Corvettes at http://www.barrett-jackson.com/palmbeach/
.

The Revenant's Auction Picks

Mecum's April Houston Auction 2014

﻿﻿

An original 2996 mile survivor found under blankets, the American and Marine flags after the passing of its original Viet Nam veteran owner don McNamara. The car was virtually unknown until discovered by a neighbor. If this car doesn't become the most valuable Corvette sold in Houston it is certainly the most storied. Don't be surprised if the car sells for $750K to $1M+. This car will be a factor in determining the future 2014 strength of the Corvette market.

Barrett-Jackson's April Palm Beach Auction 2014

This won't be the most expensive Corvette to cross the block in Palm Beach. That distinction will inevitable go to the buyer of the first production Corvette Z06 which will likely cross the block somewhere north of $1M. But with the continuing interest in original survivors though this isn't nearly as storied as Don McNamara's 1967 Corvette consigned at Mecum's Houston event and it has nearly 16K more miles (total 19.1K) it is one of the most original 1967 427's out there. Literally the car is a time capsule and has received the NCRS Chevrolet Bowtie Preservation Award, five NCRS Top Flight
Awards, NCRS Performance Verification Award on the first and only attempt, NCRS
Duntov Marque of Excellence Award, Bloomington Gold Historic Survivor,
Bloomington Gold - Gold Certification, Bloomington Gold Benchmark Award, Gold
Spinner Award and Triple Crown Award. Cars like this can be a challenge to put a price on since they are often bought to end up either as trailer queens or sitting idly in a museum in order to preserve their time capsule status and value. It will also serve to illustrate the strength of a benchmark survivor 1967 Corvete vs a concours restored 1967 corvette which is also being sold from Rick Hendrick's collection. Nevertheless I think this car will hammer for $350K+. Unlike the McNamara Corvette at Mecum;s, this one will definitely be sold since it has no reserve.

The Corvette hobby has millions of enthusiasts but few as
recognizable and well known as Terry Michaelis, president and co-owner of Pro Team
Corvette in Napoleon, Ohio, and Corvette collector who has owned some of the
most important Corvettes ever produced.In addition to amassing one of the finest and largest Corvette
collections in the country, he has notably impacted both the Corvette hobby and
enthusiasts over the past forty years that he has been consumed with America’s
sports car.Chances are if you love
Corvettes and are a student of Corvette history then you have been impacted in
some way by Michaelis’ involvement in the hobby, whether just enjoying one of
his historic Corvettes that are frequently invited to be shown in shows across
the country or by the years of work Michaelis has devoted to archiving and
sharing important details about the car and its history. That is why Terry Michaelis has been selected
by the Bloomington Gold selection committee to be inducted into the Great Hall
during the celebrated Bloomington Gold three day event held annually in
Champaign, Illinois, June 27th through the 29th. Michaelis will become one of the 50 people or
organizations who have most impacted and influenced the Corvette hobby since
the car’s inception and will be one of only ten people and organizations to be
inducted during this, the final year for inductees.

Bloomington Gold Great Hall (Photo: Bloomington Gold)

This year marks
the end of a five year program honoring ten individuals or organizations and
ten Corvettes as the most important in the history of the car, culminating over
five years with the 50 most significant
and influential people or organizations and the 50 most influential and
historic Corvettes, throughout the Corvette’s legendary and storied 62 year
existence. Michaelis will join nine
other 2014 inductees such as Larry Shinoda, Vince Piggins, Karl Ludvigsen, Ronnie Kaplan, Irwin
Kroiz, Bob Gold, Al Grenning, and organizations the National Corvette Museum
and Cypress Gardensas well as noted past inductees such as
Zora Arkus-Duntov, Bill Mitchell, Jim Perkins, Reeves Callaway, Mike Yager and
Kevin Mackay to name just a few.

Michaelis has bought and sold over 10,000 Corvettes since his
first purchase and sale back in 1971 and is a leading authority on the
Corvette, its design, parts, options and engineering.He has written several scholarly articles on
the Corvette(see TMichaelis Corvette Perspectivehttp://www.tmichaelis.com/tag/classic-car-community/
) and has owned some of the rarest and most sought-after Corvettes ever
produced.In addition to traditional methods
of amassing an important Corvette collection, he has also miraculously found
and restored several “barn finds” which have turned out to be historically
significant.But the word “miraculously”
is misnomer because it’s not miracles but rather hard work that has paid off
for his collection and business.Michaelis
puts untold hours researching specific Corvettes before and after he acquires
them and then usually subjects his acquisition to a detailed restoration often
costing hundreds of thousands of dollars.

Michaelis' Dick Lang Z06 restoration cost over $225K

Over the years Terry Michaelis’ collection has been a
virtual dream team of Corvettes. While many collectors salivate like a
Pavlovian dog at the thought of one day finding and restoring any forgotten Corvette
tucked away in a barn, a few years ago, within months of each other, Michaelis
discovered two separate “barn find” Corvettes.But these were not ordinary forty-five year old barn finds, they were 1963 Z06’s both
had racing history.After acquiring the cars
and thoroughly documenting their provenance he restored the important cars and
then sold them.

Enthusiasts may have also seen the six part TV documentary, “The
Last Sting Ray,” about the restoration and history of another one of Michaelis’
finds, the documented last 1967 Sting Ray ever produced. After a very costly, world-class restoration it
sold on TV at Barrett-Jackson’s auction for $660K in 2007.Those who got to see the car cross the block
also got to see Terry kick off the sale of the silver coupe and also observe
one of qualities that has made him so successful over four decades; like
P.T.Barnum, he is known for “over the top” marketing.

And he is relentless in his continual quest to find other
Corvettes to add to his stable. A stable that has at one time included several of the Great Hall's fifty most important Corvettes.

Most recently he has shown and taken home several ribbons and
awards at concours and judged Corvette events throughout the country with his
1963 Z06 “tanker” formerly raced by Dick Lang.And when he puts one of his Corvettes up for sale, the buyer must keep
in mind that he will be bartering with the consummate Corvette collector and
expert who knows more than the buyer does about the Corvette and the Corvette
collector market.His Lang Z06 crossed
the block at Mecum’s Kissimmee sale but the Corvette failed to meet Terry’s reserve
even though it was bid to a healthy $900K.Simply based on the restoration, the history, the significance and the
awards, the car was worth more and Terry knew it and wasn’t going to be
“low-balled” with a mere $900K bid! And he must have been right because the Corvette subsequently has sold.

Michaelis snatched up this important 1969 L88 for less than $300K

Over the past several years several Corvette collectors
watch Michaelis to see what he is buying, like stock investors watch Warren
Buffett, realizing that he is usually ahead of the market.Terry was avidly seeking out the iconic and recently
record setting L88’s before they were selling for $3+M.And savvy “Michaelis watching” collectors know
that Pro team’s president is reeling in some big catches, especially when it
comes to third generation L88’s. In
January 2013 he snatched one of the best buys at Barrett-Jackson’s Scottsdale
auction, paying less than $300K for a third generation 1969 L88 and then in
September brought the car back to auction and this time at Mecum’s Dallas event
the car was bid to over $400K but did not meet Terry’s reserve.

1953 Daytona Beach Time Trials NASCAR headed to Amelia Island

Winning awards is not unusual for one of Michaelis’ Corvettes which always seem to be featured at
concours events throughout the country.The
awards, though a satisfying testament to the quality and accuracy of the
restoration, ultimately add value to the car when it if offered for sale.One of his cars, a first generation 1953 Corvette,
which he refers to as his “Beach Car,” is
the oldest known competition Corvette, one of the three first generation Corvettes to run at the 1955 Daytona Beach Time
Trials, and has been invited to the Amelia Island Concours d’Elegance.This is one of three Corvettes that were
prepped for the NASCAR time trials where the Corvettes ultimately proved to be
a worthy competitive sports car and played an important part in the survival of
the Corvette brand.

But as busy as he is with his Corvette business and
collection Terry is never too busy to take some time out of his schedule to
talk with and help Corvette enthusiasts and collectors and to share his vast
knowledge on Corvettes. Whether it is a
question on a correct restoration part or to tell the story and history of a
car Terry takes the time to help a new Corvette enthusiast just starting out in
the hobby just as he would for one of his repeat customers.And he
recognizes the role those Corvette friends and acquaintances have played throughout
his career.When asked about his
induction into the Great Hall he says, “As flattered as I am to accept entry
into the Great Hall, I don’t enter alone. I take along the decades of indelible
friendships and memories.”

Thursday, February 20, 2014

Bunkie Knudsen's Styling Roadster to be auctioned at Mecums in Houston (Photo: Mecum)

It appears that Mecum® is off and running for 2014 after a
weather induced slow start in Kissimmee.Their Houston event is shaping up to be typical of the high quality consignments
that usually characterizes their events with some outstanding Corvettes
scheduled to cross the block from Thursday, April 10th through
Saturday, April 12th.As I
was reviewing Mecum’s® latest on-line catalog (http://www.mecum.com/auctions/top_picks.cfm?AUCTION_ID=HA0414),
two Corvettes jumped off the page to
capture my attention.Certainly no
Corvette enthusiast could ignore the Bunkie Knudsen Corvette, after all it is
not only the auction headliner, it is one of the most interesting Corvettes
ever made, as well as the personal car for then Chevrolet General manager
Bunkie Knudsen.The second Corvette,
perhaps not as well known, is the stunning 1967 Corvette coupe once owned by
former Marine and Viet Nam veteran,Don
McNamara, and put into storage with less than 3K miles on it, has a bullet
proof provenance and literally may be the finest 1967 “survivor” in
existence.

The McNamara Patriotic Corvette survivor with less than 3K miles to be sold in Houston (Photo: Mecum)

The McNamara Corvette just might end up being the brightest
star among many Corvettes at the Houston event, even considering the tough
competition from the Knudsen styling car and a 1966 “big tank” coupe.The fascinating story of McNamara, returning
from Viet Nam and winning $5K in Las Vegas during his retirement celebration,
then subsequently ordering his dream car is certainly interesting enough on its
own, but what happened after that is even more compelling.Strangely after putting 2996 miles on the Corvette
it suddenly and mysteriously disappeared. An unusually private person, when asked what
happened to his Corvette, McNamara simply said he no longer owned the car,
though rumors persisted that the Corvette was hidden in his single car heated
garage.Not until his death in 2011 was
the Corvette found by a neighboring couple he befriended later in his
life.Only then was it discovered that
McNamara secretly put the car in storage where it remained hidden away from
family and friends.When the car was discovered
it was sheathed in a car cover, and covered with storage blankets and Marine
Corp and United States flags, which preserved the car as it appeared over 45
years before.His next door neighbor for
22 years who discovered it had never seen the car before that day.

Passenger seat never sat in (Photo: Mecum)

Don McNamara’s patriotism was his inspiration for ordering
the car in Ermine white with a red stinger and interior and to complete the
patriotic theme he replaced the black wall tires with white and blue double
stripe rubber.McNamara was intensely
private, was never married and never even had a credit card or checking
account.So finding the Corvette
treasure hidden safely in his garage did not seem so out of character by the
very few people that knew him. After the first year of ownership, not wanting
to pay insurance, registration and license fees, he put the car away.Until the mid 1980’s he only drove it
occasionally at night until the mileage approached 3K when he put the Corvette
away permanently. The Corvette had only
been driven by McNamara, the passenger seat had never been sat in and until
discovered the Corvette had never been touched by water, never in rain or
washed!

﻿﻿﻿﻿

Other than a few personal touches like Edelbrock valve
covers and four Corvette decals on the air cleaner the car remains as it was
when orderedwith the L36 427/390 HP
engine, M20 4-speed manual transmission and 3.36 Positraction rear end.In addition tinted glass, telescopic steering
wheel, AM/FM radio, side exhaust and bolt-on aluminum wheels were also added
pushing the original invoice to $5.504.With the help of his father a dealer was located that would keep the
Marine’s dream alive and sell the car just below McNamara’s $5K limit.This
beautiful example of the lastyear of
the second generation Corvette will be sold along with the original window
sticker, showroom sales brochure, Chevrolet warranty book with Protect-O-Plate,
the original keys and fob and a duplicate set of keys; the original owner’s
manual and plastic pouch, dealer record book issued by Ray Motor Co., a
cashier’s check for a deposit and a receipt for the balance of the purchase
price, the original State of Colorado license registration and title issued to
McNamara dated May 22, 1967 and the NCRS Shipping Data Report confirming
delivery at Ray Motor Company in Lamar, Colorado.Lot S128 will cross the block on Saturday,
April 12th.

﻿

Don McNamara added his personal touch of additional Corvette insignias to the air cleaner (Photo: Mecum)

The featured car of the entire auction is Bunkie Knudsen’s
personalized Corvette roadster, styled by GM, copying the modified 1963
Corvette shown at the New York Auto Show that year.As many Corvette enthusiasts know Bunkie
Knudsen was the General Manager of Chevrolet from 1961 through 1965 until he was
elected executive vice president of GM®.This is one of four second generation Corvettes modified by GM that
included the custom exhaust pipes which exited through the body of the
Corvette.Last October Mecum offered
another styling car which had the same modified exhaust feature and belonged to
Harley Earl which was the top seller of the auction and sold for over $1M. Knudsen’s is the third “styling Corvette” offered since
the October Chicagoland auction last year, the second was a pink 1963 roadster
owned by Mrs. Harley Earl and failed to meet reserve in Mecum’s January event
in Kissimmee.But unlike the other two
Corvettes, this one has been impeccably restored by noted Corvette restored
Werner Meier .

Knudsen's favorite Firefrost Metallic also used on the interior (Photo: Mecum)

The car was finished in Knudsen’s favorite custom color,
Crimson Firefrost metallic lacquer and accented
with a full-length white stripe and white soft top (the car also retains a
matching hard top). This combination was also carried through in the modified
interior, where a unique custom shift console assembly was flanked by 1964-type
seats upholstered with white naugahyde and maroon accent stripes.In addition slotted stainless steel floor
grille plates replaced the stock floor mats which was common GM styling cars of
the era. A custom twin-spoke steering wheel featured two types of wood on the
rim and 1964 instrumentation was used in the color-matching dash. The interior
was later upgraded with changes to the instrumentation and the addition of 1967
seat belts.The car was equipped with
power brakes and windows as well.

GM stylists used Chrome and black paint on the engine (Photo: Mecum)

The 327 fuel injected engine and engine bay was also
modified, substituting chrome plating and crinkle-finish black paint in place
of the cast aluminum surfaces on the small block engine. The engine bay had to
be modified to accommodate the special exhaust system which required trimming
the heater box for clearance and relocating the battery to the area behind the
passenger seat.

After Knudsen finished with the car it was returned to stock
appearance and passed through several owners who allowed it to fall into
disrepair before being rediscovered by Corvette collector Wally Abela in a garage
being used as part of a scaffold.After
buying the car Abela consulted Corvette expert and restorer Werner Meir who was
able to trace its ownership and confirm its important heritage.In
1984 Abela turned his Corvette over to Meier for a full restoration.The unusually complex restoration took four
years to complete and required eight different machine and fabrication
facilities to complete the complicated exhaust system.But when Meier finished the exquisite
Corvette was invited to the Meadowbrook and Hilton Head concours events and has
been shown numerous times in the Bloomington Gold Special Collection.From its opening in 1994 until 2001 the
National Corvette Museum had the car on permanent display.In
2003 the car was sold and has resided in several collections until finding its
way to Mecum’s Houston event.Knudsen’s
personal, unique Corvette, Lot S119, will also cross the block on Saturday,
April 12th.

Sunday, February 2, 2014

The hammers are silenced and have been put away while the
teams at Barrett-Jackson® and Mecum® try to catch up on some much needed rest
after staging the two best collector car auctions in the world.During the two weeks of auction excitement
which took place on opposite sides of the country, Barrett-Jackson® in
Scottsdale, Arizona, and Mecum® in Kissimmee, Florida, several outstanding
cars crossed the block including over 500 Corvettes.Mecum® lived up to their claim of the Kissimmee
event being the “World’s Largest Collector Car Auction” offering 2750 collector
cars and almost 400 Corvettes. Barrett-Jackson® cemented their
reputation as being “The World’s Greatest Collector Car Auction” by expandingtheir Scottsdale lifestyle extravaganza, which is a mix of
the world’s great automobile museums, Disneyland®, Hollywood and supported by a
diverse cast of sports, racing and media celebrities ranging from racing great,
Sir Stirling Moss, to rock legend Bret Michaels.This year Barrett-Jackson® did it in an all new bricks and mortar
facility which offered enthusiasts larger, more comfortable and convenient
amenities.

Barrett-Jackson® proclaimed their 2014 Scottsdale event to
be the best in their history 43 year history with sales topping $113M (+4%), selling
1399 cars (+4%), raising over $4.4M for charity and setting a few world’s records
along the way.This year Craig Jackson,
CEO, and his team impressively staged their extravaganza in an all new permanent facility that was completed just days before the annual eight day event kicked off January 12th.

﻿﻿﻿Collectors and enthusiasts flocked to sunny Arizona from
January 12th through the 19th to enjoy the six annual major
auctions which take place in and around Scottsdale.Hagerty®, the insurance company and
acknowledged collector car expert, estimates that 15% of all collector cars
sold at auction during the year change hands in the six Arizona January auctions.As such the collector world closely watches
what happens at these six auctions to help gauge the upcoming auction
year.All but one of those six auctions
reported strong sales and sell thru percent improvements over last year,
producing a combined total of $253M in car sales. Based on those encouraging results, it looks
like 2014 is shaping up to be a good year for the collector car market.

1967 L88 Set a new world's record selling for $3.85M (Photo: Barrett-Jackson)

Clearly Barrett-Jackson® is the main event and draw of the six
January Arizona auctions offering over 1400 of the world’s most collectible
cars and 150 Corvettes.Mostly a “No
Reserve” auction, Barrett-Jackson® sold over 99% of their consignments which were up over 2013 and set
three world’s records in the process.A 1967 L88
Corvette coupe was sold for $3.85M making it the most expensive Corvette ever
sold at auction, a 1969 Corvette L88 race car, known as the “Rebel,” sold for
$2.86M a record price for a 1969 Corvette and a 1957 Ford Thunderbird “E” set a
record selling at $330K.And for the
first time, the world got to witness on live national TV two hours of what
makes Barrett-Jackson® Scottsdale one of the most elaborate and exciting extravaganzas in
the automotive world.

﻿

The "Rebel" sold for $2.86M A record for a 69 Vette (Photo: Barrett-Jackson)

﻿

"Two records

were

set by

Corvettes at

Barrett-Jackson.

A 67 L88 Coupe

sold for $3.85M

and a 69 L88 sold

for

$2.86M"

Stirling Moss in Gullwing (Photo: Barrett-Jackson)

Barrett-Jackson’s® diverse consignments ranged from Simon
Cowell’s Bugatti Veyronwhich sold for
$1.3M to a 1955 Mercedes 300 SL Gullwing which was ushered to the block by Sir
Stirling Moss, world champion race car driver and champion who during the
1950’s drove for the Mercedes racing team.In addition to the two record-setting Corvettes, sixteen “Salon
Collection” cars were sold that hammered for over $22M.These cars were some of the finest “blue
chip” collector cars spanning all years, ranging from a pre war 1929 Duesenberg
SJ LeBaronDual Cowl Phaeton to a 1999
Ferrari F300 racecar.As usual the Barrett-Jackson® team orchestrated a venue that
packed the auction facility everyday with excited enthusiasts and bidders. Over 300,000 enthusiasts packed the main
building, display tents and vendor areas to participate in the incredible
happening at Barrett-Jackson® which took place at their traditional location in
WestWorld®.When the dust settled,
anyone who attended the Barrett-Jackson® experience has a better understanding
why the Scottsdale extravaganza is known as “The World’s Greatest Collector Car
Auction.” The week following the Scottsdale events, Mecum® staged
their annual “world’s largest collector car auction” over two thousand miles
away in Kissimmee, Florida.This year,
however, due to the frozen vortex which blanketed most of the
country, thousands of airline flights were cancelled making the pilgrimage to Mecum’s
“promised land” difficult at best.Due
to the weather related transportation difficulties throughout most of the country,
it was surprising and a testament to Mecum® loyalists that attendance only fell
6%, still drawing 70K spectators and enthusiasts.Even the weather in normally sunny, warm
Florida failed to cooperate, with temperatures in the 30’s overnight and not
getting much above 60 during the day.

Mecum's Kissimmee home Osceola Heritage Park (Photo: Mecum)

But more than the weather disappointed those enthusiasts who
fled the frozen north for a week of auction heaven in Florida.Though Mecum® heavily promoted their 2750
consignments almost 1000 of them went unsold, resulting in a disappointing 64%
sell through, which was also 6% behind last year’s results and low by industry
standards where a 70% or better sell through is expected.Theunsold
cars were the biggest contributor to the significant sales loss -11.4%, down over $8M and totaling $63.435M
for the event. The average selling price of cars also slid by 8% to a little over $36K.

﻿﻿﻿﻿﻿﻿ "The main feature of the Kissimmee auction was a 1956 Corvette SR Prototype that was hammered sold for over $2.3M, then the deal fell apart due to a third party dispute over ownership of parts used in the restoration."

﻿﻿

The 1956 "Real McCoy" Sale Fell Apart (Photo: Mecum)

Even Mecum’s® recognized strength, the Corvette, could not mend
the slumping sales performance.Though several
important Corvettes were consigned, only three of the top ten Corvette lots
were actually sold, unheard of in a Mecum® auction.The main feature of the auction, a 1956
Corvette SR prototype, known as the "Real McCoy" was hammered down at $2.3M, far off the anticipated
world’s record price that it was rumored to bring, and then the sale fell apart
afterwards due to third party claims
of ownership of parts used in the restoration.An
analysis of the close to 400 Corvettes that were on hand for the sale showed
that the sell thru was less than 58% and on Saturday when the best Corvettes
cross the block the sell thru was even more disappointing at less than
50%.

﻿﻿

The 1963 Z06 originally driven by Dick Lang (Photo: Mecum)

"The Dick Lang 63 Z06 was bid to $900K and failed to meet the seller's reserve. A staggering seven of the top ten Corvettes failed to sell."

And sales weren’t much better for other premier cars in the
auction.More than a few of the
“featured” and “star” cars simply did not sell, due to high reserves.To illustrate, in a January 6, 2013, press
release (read it here: http://www.mecum.com/news/news_detail.cfm?NEWS_ID=2358)Mecum® touts eight important featured
consignments, five of them Corvettes.Of
the eight cars featured in their press release, unbelievably, only one of the
eight sold, that calculates to an unheard of 12.5% sell thru.The five Corvettes promoted in Mecum’s
press release included the main auction attraction, the highly promoted 1956
Corvette SR Prototype (Lot S132), a concours winning1963 Corvette Z06 race car originally driven
by Dick Lang (LotS148), a 1963 Corvette “Styling”car formerly owned by Mrs. Harley Earl (Lot
S153), the famous 1988 Corvette Callaway “Sledgehammer” (Lot F259) and another
pristine 1963 Corvette Z06 (Lot S150.1 ).Add to those important cars another five of the most important Corvettes
in the auction: three third generation L88’s, another 1963 Z06 and a 1967 L89
and you have, arguably, the top ten Corvettes of Mecum’s 2014 Kissimmee event.* Of these
important, “blue chip,” ten Corvettes an astounding seven did not sell!﻿

Frank Mecum closing a deal (Photo: Mecum)

"Dana’s son Frank, director of consignments, adeptly stepped up and following in his father’s footsteps put together some seemingly stalled deals."Clearly the frustrating Saturday results did not go unnoticed
as the auctioneers goaded the sedate audience to get behind the bidding and
“make some noise” while at the same time openly begging bidders to up their
bids and pleading with sellers to take their reserves off the cars.And if all that weren’t enough, Dana Mecum,
founder and president, known as the “Dealmaker,” was noticeably not feeling
well, curtailing his “dealmaking” with his “down-home” colloquialisms.Dana’s son Frank, director of consignments,
adeptly stepped up and following in his father’s footsteps put together some
seemingly stalled deals.Frank along
with his co director, John Kraman, has put together the best and most important
Corvette offerings throughout 2013 and cemented Mecum’s reputation as the “king
of Corvettes.”
﻿﻿﻿﻿

On top of all this, adding to the disappointing Saturday
results, unbelievably, only two hours of live TV coverage were broadcast on
Saturday, the auction’s premier day.The
two hours of live coverage on Saturday were the least important time of
Saturday’s auction, absurdly not broadcasting live the most important
attractions.More than a few loyal
Mecum® viewers lit up social media with their disappointment in the TV coverage
and format this year.If the format
change was made to improve and excite Mecum® fans it was clearly a “fail” from
a view perspective.

Contrast Mecum’s Saturday coverage with the over-the-top two
hour broadcast on Fox® network TV of the exciting peak two hours of
Barrett-Jackson® Scottsdale, where viewers saw two Corvettes hammered down for over
$2.5M each.One, a 1967 L88, set a
world’s record selling at $3.85M.By comparison there was no "live" TV of the best hours on Saturday. Instead Mecum planned a one hour taped delayed broadcast on Sunday scheduled to cover some of
Saturday’s peak auction highlights, but even that fell apart, first being
preempted for an hour by a hockey game and then the scheduled one hour
broadcast was cut to only a half hour, most likely because so many of the
featured cars did not sell. Most likely this was a decision by NBC and not by Mecum. Clearly this
is not in keeping with Mecum’s past efforts to help enthusiasts and collectors
closely follow their events and search past and future auctions with their
excellent Mecum InfoNet® program.

Of course the main objective of an auction is to sell
cars.The TV coverage, the weather, and
even the enthusiasm and excitement in the arena are only catalysts, all
secondary to selling cars.But the fact
is even though they are only catalysts, they are important ingredients to
hearing the auctioneer shout “sold”.Of
course the biggest catalyst to a great auction is to have a balanced array of
quality consignments that attract bidders, an area Mecum® has excelled in prior
years .In addition to historic “blue
chip” collectibles, one of Mecum’s unique strengths has always been to offer
first time buyers a good assortment of entry level cars and as in the past
Mecum once again came through.At the
other end of the balance spectrum is to entice owners of rare and important
cars to consign them to be sold, with “to be sold” the key phrase.Good consignments are those from sellers that
truly want to sell their cars and as such put realistic reserves on their car.
And though “size matters”, size for the sake of size does not make sense,
especially when the cars do not sell.Though several factors negatively impacted
Mecum’s® premier auction, some of those factors were outside the control of the
staff who work hard to stage a great auction, particularly the world’s largest
collector car auction.Of the over 1759
cars that changed hands, 232 of those were Corvettes that generated almost $12M
despite the weather and drop in attendance.Those that made the trip got to see some historic cars, despite the fact
that many did not sell, and enjoy one of the premier automobile events in the
country .

Rick Tavel …is a free lance automotive journalist and an avid car enthusiast. Though he spent his professional career as a business executive, now retired, he devotes his time to writing, organizing Corvette events, and evaluating Corvettes for prospective owners for his company R/TCorvetteConsultants.He is currently working on a book about the significance and development of the 1999 and 2000 Corvette Hardtop, known as the Fixed Roof Coupe. He raced as an avocation when he was younger and held an SCCA Professional Racing license and raced in the Minneapolis Grand Prix. He was active in the PCA. He currently owns a Corvette C5 FRC and a Corvette C6 Grand Sport convertible. In addition he owns and shows a vintage Pontiac Trans Am "survivor" which he is going to sell to acquire a 2nd Generation Corvette. He graduated from the University of Kentucky’s School of Journalism. When he isn't writing, researching, painting or driving he is usually enjoying time with his grand daughter, Avery, in her wonderful world of discovery and make believe. He lives with his wife and his dog, "Jazz", a West Highland White Terrier, in Bloomfield Hills, Michigan and Gold Canyon, Arizona."

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